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Left to right: Leftist Syriza leader Alexis Tsipras, Socialist Pasok party leader Evangelos Venizelos and conservative New Democracy party leader Antonis Samaras, as they leave the presidential palace in Athens after coalition talks failed on Tuesday.
ATHENS—Greece is heading to new elections after political party leaders failed to reach an agreement to form a coalition government following an inconclusive election May 6 that left the cash-strapped country deeply divided and put its fate in the euro zone in doubt.
Greek Socialist leader Evangelos Venizelos says the country is heading for new elections after coalition talks failed. The euro fell below $1.28 on the news. Katie Martin reports on Markets Hub. Photo: Bloomberg.
A statement from President Karolos Papoulias said that talks had failed to reach consensus.
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The meeting with the heads of Greece's five largest political parties—the conservative New Democracy, Socialist Pasok, Democratic Left, leftist Syriza and nationalist Independent Greeks—was a last-ditch effort to reach an agreement after more than a week of talks had failed to break the political deadlock.
"We are going again towards elections, in a few days, under very bad conditions," Pasok leader Evangelos Venizelos said after the cross-party meeting ended.
Mr. Papoulias said a meeting will be held Wednesday at 10 a.m. GMT to discuss forming a caretaker government ahead of the next elections, which are expected to take place by mid-June.
Under Greece's constitution, the party leaders will have to agree on a caretaker government to lead the country to fresh elections. If they can't agree on a caretaker prime minister, the president must appoint the chief justice of Greece's Supreme Administrative Court, the Supreme Court or the Court of Audits to lead the country to elections.
Greece's May 6 elections left a deeply fragmented parliament with no single party or coalition able to form an outright majority.
Recent polls suggest a new election could deliver an equally fragmented parliament, but the next time around, Greece won't have the luxury of prolonged cross-party negotiations. By the end of June, the country must detail and approve fresh measures to bridge a budget gap of €11.5 billion ($14.7 billion) in coming years as its economy, mired by five years of recession, continues to shrink.
Greece's international lenders have warned that they won't discuss further aid disbursements until a new government is formed.
Write to Stelios Bouras at stelios.bouras@dowjones.com
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发表于 2012-5-16 00:17:01
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